Module II: Decentralized Application 101

Tom | Koinify

Basic Concepts• Decentralized Application

• Decentralized Autonomous Organization

• Decentralized Autonomous Corporation

• Smart Contract

• Secure Multi Party Computation

• On-chain code

What’re the differences?

Classic distributed app

Smart Contract

DAC/DAO/dApp

Smart Corporation

Autonomous decision rules

Value Exchange

Dynamic membership

Peer-to-peer Economy

Blockchain Technology

Cryptoeconomics

Blockchain: a trustable public cloud infrastructure

Today Future

Client

Private Cloud

Yesterday

Private Cloud

Private Cloud

Client

Blockchain: Protocol, Identity &

Data

Client

Private Cloud P2P Nodes

Human service

dApp Services

Peer-to-peer services

Computing Service

Storage

Computation

Bandwidth

Resource Redistribution

IoT (sensor etc.)

Immutable storage Insurance

DEX

Lottery

Prediction Markets

Lending

Derivatives

Digital Property (e.g. domain)

Large scale collaborations

dApp stack

BlockchainConsensus Layer

Meta Layer / API

model & controller: consensus-critical

View

model & controller:regular

application logic

API

Consensus components

• Shared application state: Proof of X

• Economics: distribution & incentive

• Membership / Access control

• Self Governance

Cryptoeconomics: A design pattern

• Encourages open & common protocol

• (Native) Crypto Token serves to:

• Secure network. Storing / processing data

• Incentivize developer as seigniorage

• Reward Content/App specific contribution

• Gamification

• Bootstrapping, Continuous Price discovery

Software as public goods

New compensation models … means more public goods• Classic corp models

• Product sales (Apple)

• Extra service (Redhat)

• Asymmetric monetization (Google ads)

• Crypto models

• Seigniorage -> Dev

• Capital gain -> Dev/Token Holders

• Rewards -> Token holders

Limit & Control

Open involvement

minority … majority

majority … majority

- Data layer for blockchain: Federated + Auditing nodes

- 1 min confirmation time + 10 min pegging to master blockchain

- 2-class structure: - Factoid: Mining rewards. Exchangeable.

Constant annual token inflation - Entry credit: For recording data.

Deckbound

• First blockchain based trading card game

• Colorcoin-like tracking for cards

• https://www.youtube.com/watch?v=d_-mxgUNiOM#t=27

Augur: P2P prediction market

• “Google for the future”

• Weather insurance, election prediction, enterprise forecast, price discovery, funding public goods

• Sidechain + Ethereum

• 2-class structure

• Stable Coin: Stabilization via Seigniorage shares scheme.

• Reputation: Fixed supply. Non-fungible. Use it or lose it.

• Reputation allows nodes to vote on decision outcome.

Koinify: Marketplace for dApps

Recap: the distributed toolkit

View (Web)

Notarization

Tokenization

Programmable logic

File Storage

Eris

IPFSMaidsafe

TahoeLFS

FactomCounterparty

Storj

Ethereum

Codius

Blockchain

ZeroNet

Final Demo Days• Finalize project proposal: Feb 14th

• Internal Demo day: Saturday Mar 7th

• Top Projects Public demo night: Tuesday Mar 10th

• signup at meetup.com/blockchainu

• Attendees: leading crypto startups and VC

• Must use one or more of the distributed toolkit: filesystem, smart contract, notarization, tokenization, etc.